We live in a world now where we are encouraged to live on credit. Home Loans involve the largest amount of credit for most people, followed by cars, boats and caravans. At the other end of the scale we have credit for household appliances and furniture and then there is regular credit, which includes energy providers, councils and telecommunication companies.

With so much of our income associated with payments for credit, it is little wonder that more and more people find that they have missed a payment and all of sudden, there is a default on the credit file. It can happen for many reasons. It might be that the payment was forgotten or there may have been insufficient funds in a bank account at the time. It could also occur due to a change of address. At SJ Financial Services we can assist you with a loan, even if there a blemish on your credit file. It is important, though, that steps are taken to remedy the situation, as the longer the matter is left unattended, the more severe is the attitude of a potential lender when viewing the credit file. If you suspect that there may a default on your file, you can access  your information at the website: http://www.mycreditfile.com.au/home/home_default.aspx

The first step should be to contact the credit provider in question and to verify the circumstances of the default. Most credit providers are reasonable and will be ready to make arrangements with you to pay a debt. Any dispute should be attended to immediately. Should the onus be on you to pay the outstanding amount, this needs to be done as soon as possible and the credit provider should be contacted to notify them of the payment and for a notation to be made on the credit file. It is preferable that any default is paid before attempting to arrange further credit.

Some defaults are viewed as more serious offences by credit providers. One of these is notated as a "Clearout'. This usuallly means that the person has moved and is not traceable. Credit providers often construe a "Clearout" as a deliberate attempt to avoid payment of a debt. A "Clearout" stays on a credit file for seven years, whereas other defaults will remain on a file for a period of five years. It is very important to maintain up to date payments with all credit providers and therefore have a blemish free credit file. Your credit file will always be a reference point when applying for a loan.

If you find that you have a default on your file, feel free to contact SJ Financial Services and discuss the probability of gaining further credit.

*This article is intended to provide general advice only and is not intended to apply to your, individual circumstances. Personal financial advice should be sought before making any financial decision.